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regular-article-logo Wednesday, 26 June 2024

Bank of Baroda reports 2.32 per cent rise in standalone net profit to Rs 4,886.49 crore

The quarter was marked by the bank making additional provision against its exposure to Go First. It also set aside money towards pension liabilities

Our Special Correspondent Mumbai Published 11.05.24, 10:30 AM
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Bank of Baroda (BoB) on Friday reported a 2.32 per cent rise in its standalone net profit for the quarter ended March 31.

The state-owned lender clocked a net profit of 4,886.49 crore against 4,775.33 crore in the year-ago period.

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The quarter was marked by the bank making additional provision against its exposure to Go First. It also set aside money towards pension liabilities.

During the quarter, BoB’s core net interest income rose 2.3 per cent to 11,793 crore from 11,525 crore. This came after a 12.5 per cent increase in advances, and a 0.26 per cent decline in net interest margin to 3.27 per cent.

Non-interest income showed a growth of 21 per cent at 4,191 crore against 3,466 crore in the year-ago period.

Speaking to reporters, chief executive and managing director Debadatta Chand, who did not name Go First, said the bank decided to provide for it fully within a single quarter, leading to a rise in provisioning for non-performing assets to 1,485 crore from the 320 crore in the same period of the previous year.

A senior official here said that while the lender has been making provisions against the account, during this quarter, it decided to take full provisions, including the one-third portion which enjoys government guarantee.

The official added that apart from this account, a UAE-based hospitality account with a 500 crore exposure also slipped during the quarter due to liquidity challenges.

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